What are quality products?
Quality products are those whose characteristics and features satisfy the needs of customers
Customers may consider products or services to be of good quality if they:
- look good and are sold by a reputable business or brand
- are reliable and durable
- are safe and fit for purpose
- receive good customer service, including after-sales service
What are factors that influence quality perception?
- After-sales service
- Product appearance
- Safety
- Company reputation
- Product durability
- Customer service
- Reliability
- Product effectiveness
Why to many business set quality targets?
- Many businesses set quality targets to focus staff and resources on meeting customer expectations
- Pizza chain Domino’s sets targets for home deliveries completed within 30 minutes of customers placing an order
- Customers are fully refunded if their pizza arrives after this time
How can the quality of a business’ products provide a competitive advantage?
- High levels of quality can be used in promotional activity and provide a unique selling point for businesses in competitive markets
- Successfully developing a USP for quality can ease expansion into new markets as a result of the positive reputation it creates
- Increased finance may be available to fund marketing activity to improve brand recognition and attract new customers
- Unit costs are likely to be low if a business effectively manages quality
- Low costs may allow a business to reduce its selling price to better compete with or undercut its rivals
How is quality linked to price?
- High-quality products can usually command a high price
- Lower-quality products may need to be sold at a discount to persuade customers to buy them
What is quality control?
Quality control is a traditional method of checking quality at the end of the production process by using quality inspectors to find faults
What are the advantages of quality control?
- Specialists in quality control check standards
- Little staff training is needed as inspectors check quality rather than the employees themselves
- It is an inexpensive and simple way to check that output is fit for purpose
What are the disadvantages of quality control?
- Rejecting finished goods is a significant waste of resources
- The cause of defects is ignored, so problems may continue
- There are high costs of scrapping or reworking products
What is quality assurance?
- Quality assurance involves inspecting the quality of production throughout the process
- Workers check their own work and, sometimes, the work of others at various stages of production
- Some business take a whole-business approach to quality assurance, with systems such as quality circles, benchmarking and total quality management (TQM)
What are the benefits of quality assurance?
- Quality issues are identified early, so products may be reworked rather than rejected
- The cause of defects is the focus, so future quality issues may be prevented
What are the disadvantages of quality assurance?
- Staff training and a skilled workforce is required, so labour costs may be increased
- Reworking may lengthen the production process
What are the benefits of improving quality?
- Happier, more loyal customers
- Access to new markets
- Lower long-term costs
- Competitive edge and brand reputation
- Ability to charge premium prices
How will improved quality give the business happier, more loyal customers and given an example?
- Good‑quality products meet needs the first time, so buyers come back and recommend the brand
- UK retailer John Lewis often tops customer satisfaction polls; shoppers keep coming back because they trust the store’s consistent product quality and service standards
How will improved quality give the business the ability to charge premium prices and give an example?
- Strong quality justifies a business achieving higher profit margins
- Apple’s high‑quality design keeps iPhone prices far above rivals yet sales stay strong
How will improved quality give the business lower long-term costs and give an example?
- Fewer defects mean less scrap, reworking of products and returns
- When General Electric introduced Six Sigma, it cut defects so much that the company saved billions of dollars on wasted materials, rework and warranty claims
How can improved quality give the business access to new markets and give an example?
- Quality certifications such as ISO 9001 mean businesses can apply for valuable contracts and export deals
- GFM Holdings, an Essex‑based business, won a local council contract to manage public buildings when it achieved ISO 9001 certification
How can improved quality control give the business competitive edge and brand reputation and give an example?
- Reliable quality helps a firm to stand out in crowded markets and build a reputation that is hard to copy
- Toyota vehicles are well known for lasting a long time with few breakdowns, which means buyers choose its models over dozens of rival brands, even if the price is slightly higher
What are the difficulties of improving quality?
- Ongoing quality management costs
- High up-front costs
- Resistance to change
- Consumer price sensitivity
- Strained resources
How can high-upfront and ongoing quality management costs caused by improving quality be problematic for a business?
Small firms often struggle to pay for staff training, better materials and certification fees
How can improving quality cause staff reunion resistance to new quality systems?
Changing routines and adding checks can meet resistance from workers, slowing down their introduction
How can improving quality create customer price sensitivity?
- Better quality can push costs and, consequently, prices up
- Price‑sensitive shoppers may switch brands
How can improved quality cause a strain on resources for the business?
If funds are scarce, pushing for higher quality can overstretch staff and cut service levels
What are the consequences of poor quality?
- Costly recalls and repairs
- Heavy fines or legal payouts
- Damaged brand reputation and lost customers
- A sharp drop in sales and profits
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calculations36
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Setting operational objectives13
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Analysing operational performance8
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Setting marketing objectives:19
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The value of change:30
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Segmentation:8
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Targeting and positioning:29
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Organisational culture30
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The value of globalisation:20
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Budgeting:15
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Cash flow forecasts:8
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Analysing cash flow forecasts:15
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Strategic implementation:16
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Network analysis:7
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Elements of the marketing mix:34
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Improving quality:28
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The importance of Marketing Research?19
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Primary marketing research:21
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Sampling:15
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Secondary marketing research:10
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Interpreting market data:17
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Lean production:22
